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Sugar Mills Tied to PCC Process 2.5% of Sugarcane in the Center-South, Says MP-SP; Investigations May Impact Ethanol and Sugar Production.
The ethanol and sugar mills allegedly linked to PCC (First Command of the Capital) were mentioned in a complaint filed by the São Paulo Public Prosecutor’s Office (MP-SP) this week.
According to estimates from BTG Pactual bank, these units process together about 16 million tons of sugarcane per harvest, which represents approximately 2.5% of the production in the country’s Center-South region.
The investigation raises questions about the effects of this operation on the supply of ethanol and sugar, in addition to exposing organized crime’s influence in the sector.
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Mega Operation by MP-SP and Link to PCC
According to the accusation, businessman Mohamad Hussein Mourad, linked to PCC, allegedly acquired the Itajobi and Carolo mills through investment funds.
There are also suspicions that the Rio Pardo Mill may have been purchased through the same scheme.
MP-SP claims that the Furlan and Comanche mills adopted irregular practices, such as overpricing in the purchase of sugarcane and financial transfers to companies linked to the faction.
Another unit mentioned is Goiás Bioenergia, identified as part of the group of investigated mills.
Last Thursday (08/28/2025), MP-SP confirmed that it was conducting the “seizure of mills” during the mega operation, but did not detail which units were effectively targeted by the action.
Impacts on the Sugar and Ethanol Market
Experts assess that the developments in the case may bring changes to the sector’s dynamics. In a report, BTG analysts Thiago Duarte and Guilherme Gutilla highlighted that the impact on the supply of ethanol and sugar will depend on the investigated mills’ ability to maintain their operations in light of the accusations.
They emphasized that part of the sugarcane that would be processed in these units may be redirected to other mills outside the PCC-linked scheme, reducing potential losses to national production.
Reaction from the Financial Market
The immediate impact of the operation was seen in the Stock Exchange. On Thursday (08/28/2025), shares of companies in the sugar and ethanol sector recorded significant gains on B3, driven by expectations of greater competitiveness for units not involved in the scandal.
By Friday (08/29/2025), the stocks maintained their upward trajectory, reinforcing investors’ optimism.
Federal Revenue Service Indicates Risk of New Discoveries
During a press conference held on Thursday, Márcia Meng, superintendent of the 8th fiscal region of the Federal Revenue Service, stated that other mills may still be the target of investigations.
Although she did not detail which units are under suspicion, she emphasized that the scheme could be broader than what has been revealed so far.
What to Expect for the Sugar and Ethanol Sector
The connection between mills and PCC exposes weaknesses in oversight and opens the door for regulatory changes.
Meanwhile, producers, investors, and consumers await the next steps of the investigation to understand if there will be a significant impact on the prices of ethanol and sugar.
On the other hand, experts assert that the market is capable of absorbing potential losses, given that the participation of these mills represents a relatively small share of the sector, even if strategic.
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